Stock Market Today, July 9: AI Chip, Technology Stocks Rally, Overcoming Ceasefire Worries
As of roughly noon E.T., the S&P 500 (SNPINDEX:^GSPC) rose 0.56% to 7,524.39, the Nasdaq Composite (NASDAQINDEX:^IXIC) climbed 0.78% to 26,073.17, and the Dow Jones Industrial Average (DJINDICES:^DJI) added 0.24% to 52,473.28 as AI chip strength helped markets stabilize after war‑driven volatility.
Market movers
Chip and optical‑communication names, including Marvell Technology (NASDAQ:MRVL), Corning (NYSE:GLW), Coherent (NYSE:COHR), and Lumentum (NASDAQ:LITE), were among the day’s notable gainers amid sector‑wide demand for communications chips. However, high-valuation AI behemoth Palantir (NASDAQ:PLTR) extended its 29% decline year-to-date, dropping about 4% so far today.
What this means for investors
Despite the U.S.-Iran ceasefire being paused for now, and the market facing a growing drumbeat of analysts saying we might be in “bubbly” territory, stocks surged higher today, buoyed by the strength of AI and semiconductor stocks. In addition to a handful of analyst upgrades of semiconductor stocks, SK Hynix's upcoming U.S. ADR offering is estimated to be more than seven times oversubscribed, indicating that immense investor appetite remains in the space.
Elsewhere, PepsiCo (NASDAQ:PEP) unofficially kicked off earnings season this morning, delivering mixed earnings that prompted shares to dip roughly 3%. The beverages and snacks giant grew sales by 6% in the second quarter, but said it saw weaker consumer spending in the U.S. due to higher gas prices and broader macroeconomic volatility.
Whether or not the AI and technology industries are indeed in “bubbly territory” as many analysts suggest, there are a surprising number of S&P 500 stocks near their 52-week lows, so plenty of opportunities remain despite the indexes trading at or near all-time highs.
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Josh Kohn-Lindquist has positions in Palantir Technologies. The Motley Fool has positions in and recommends Coherent, Corning, Lumentum, Marvell Technology, Palantir Technologies, and Workday. The Motley Fool has a disclosure policy.
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